Currency Volatility

Ankara, Turkey as seen during AIRINC's recent on-site survey. Photo taken by AIRINC surveyor Anne Benjamin.

Falling Rents and Demand in Turkey

Rents in Turkey decreased due to lower demand, the depreciation of the lira, and the economic conditions that resulted from recent government policies and security concerns. A recent change in lease laws required that all contracts be signed and paid in Turkish lira (TRY) instead of USD or EUR.

Ankara, Turkey as seen during an AIRINC on-site cost of living survey.

Currency Bans in Turkish Real Estate Market

For many years, the expatriate rental market in Turkey has been dominated by leases signed and paid in USD or EUR. In September of this year, President Erdogan issued a decree stating that all leases in foreign currency must be converted to Turkish lira (TRY). This move was made to stem the sharp inflation that battered Turkey’s currency in 2018, resulting in a loss of over half its value at its worst point.

Exchange Rate Fluctuation and Economic Volatility

Cost of Living Allowances (COLA) are affected by complex economic factors like exchange rate fluctuation and economic volatility, which are highly unpredictable. For a COLA to be effective, the allowance must be reviewed and updated periodically to take these factors into account.

Volatility Affecting International Assignees – How Should Mobility Respond?

News about extraordinary economic volatility in major emerging market countries such as Argentina, Brazil, Turkey, South Africa, and others has global mobility departments questioning whether they need to take any special measures to address the concerns of their international assignees. 

Devaluation and Redenomination in Venezuela

The economy of Venezuela continues to be one of the most volatile in the world. On Friday, August 17, President Nicolas Maduro announced the devaluation of the Bolivar Fuerte (VEF) from about 250,000 to 6,000,000 VEF to 1 USD.

The Tumult of the Turkish Lira

The Turkish lira has had a volatile year and an especially tumultuous past week. In July, the Central Bank of Turkey alarmed investors by keeping interest rates steady even as CPI annual inflation rose to double digits.

 August 30th and September 4th: AIRINC Institute, Part 5

Join us for part 5 of the 2018 AIRINC Institute, an educational webinar series covering everything from the essentials to the latest trends in Global Mobility.

 August 22 and 28: AIRINC Institute, Part 4

Join us for part 4 of the 2018 AIRINC Institute, an educational webinar series covering everything from the essentials to the latest trends in Global Mobility.